- The United States and its allies are advancing new battery metals deals to reduce reliance on China.
- Offtake agreements in Congo and Zambia aim to secure copper and cobalt for Western supply chains.
- African producers say any partnerships must protect sovereignty and deliver stronger local benefits.
THE UNITED States and its allies are accelerating deals in the battery metals supply chain to lessen their dependence on China for the minerals essential for electric vehicles and grid storage.
This initiative blends new trade proposals with agreements from Africa and innovative financing structures aimed at transforming the flow of copper and cobalt in global markets.
During a crucial minerals meeting in Washington on February 4, U.S. Vice President JD Vance shared plans for a preferential trade bloc, emphasising the need to stop “cheap critical minerals” from flooding the market and undermining manufacturers.
“We will establish reference prices for critical minerals at each stage of production,” Vance said, noting that these prices would “operate as a floor maintained through adjustable tariffs.”
U.S. Secretary of State Marco Rubio mentioned that 55 countries participated in the discussions, cautioning that critical minerals are “heavily concentrated in the hands of one country,” which he described as a “tool of leverage in geopolitics.”
This strategy signifies a shift from direct ownership of mines to financial and trading mechanisms that can redirect supply without putting U.S. operators in risky areas.
“We’re already seeing U.S. engagement reshape mineral flows out of Africa,” said Thomas Scurfield, a senior analyst at the Natural Resource Governance Institute.
“The U.S. is backing its words with financial support, but it’s still uncertain if it can match China’s scale and speed,” he added.
At the heart of this approach are offtake-linked structures that provide U.S.-aligned buyers with preferential access to copper and cobalt from the Democratic Republic of Congo and Zambia.
According to Reuters, Washington is facilitating arrangements with Swiss trader Mercuria and the Congolese state miner Gécamines to channel output into supply chains that are less influenced by Chinese refiners.
In December, the U.S. International Development Finance Corporation showed interest in acquiring an equity stake in a venture between Gécamines and Mercuria to market copper and cobalt.
Under the proposed arrangement, U.S. end-users would have a “right of first refusal” on supplies, as reported by Reuters.
“This collaboration marks a pivotal step in Gécamines’ journey to strengthen its role in the global metals market,” said Gécamines chairman Guy Robert Lukama.
Kostas Bintas, Mercuria’s global head of metals and minerals, referred to the partnership as “a redefinition of how Congo interacts with global metals markets.”
The DRC is responsible for over 70% of the world’s cobalt and is a key supplier of copper, making it vital for electric vehicle and battery supply chains.
Congolese officials emphasise that any partnership must safeguard national interests and enhance local value capture.
“Everything we have done with America is a framework under which we will discuss questions of mutual interest. That is all it is,” Mines Minister Louis Watum Kabamba said at the Mining Indaba conference in Cape Town.
“For those who think we are going to sell everything for nothing to America, I must be very clear: we have sold nothing. And we will sell nothing for nothing,” he added.
Watum Kabamba mentioned that Congo would “look for other partners” if the framework does not lead to tangible projects.
At Mining Indaba, investors expressed caution following recent fluctuations in lithium prices and tighter financing conditions.
U.S.-backed TechMet is aiming to raise up to $200 million for critical minerals projects, as its CEO Brian Menell told reporters.
“We decided to keep it open in order to seek another one or 200 million (dollars), which we’re busy concluding now,” Menell stated.
“There has been a lot of additional appetite for further investment beyond the target that we originally set.”
Analysts suggest that Washington’s strategy is centred around financial, trading, and pricing tools to counter China’s stronghold in mineral processing.
“This is the U.S. deploying financial firepower rather than industrial presence,” said Vincent Rouget, an analyst at Control Risks.
